Since ADA rewards do not create a transaction till they are withdrawn, is it good to keep doing that to keep the cost basis accurate?
Which ADA wallet are you using? You want CoinTracker to reflect reality (e.g. what’s on the blockchain) so if you see ADA rewards showing up in your wallet that aren’t captured in CoinTracker, you can add them manually for now (let us know the wallet though so we can see if there is a way to automate this for you).
See that’s the issue. It shouldn’t matter. No transaction will ever be captured by your platform since rewards are never a transaction on the chain. There is only a transaction when claimed. So to capture it as a transaction it seems I should claim rewards every block because that creates a transaction with an accurate cost basis by claiming when I get them every block. This is a huge issue with VET rewards since there is no tracking at all. Along with THETA rewards since it pays out every tenish minutes. It’s a tax related mess I hope you have on your radar. At least ADA is every block which equals days and not minutes.
Thanks for bringing this to our attention. If there is no transaction for ADA and VET rewards, how/where is the reward amount tracked?
For ADA it gets deposited to a rewards wallet and automatically adds to the staking balance. It needs to be withdrawn to the staking wallet to generate a transaction. So if I don’t watch each epoch it will just rack up and then all be withdrawn at once. To me this seems to look like an inaccurate cost basis if I don’t know how much I was paid at each epoch. The rewards can be different each time depending on the pool performance. For VET it will generate VTHO when owning VET. Currently, 1 VET generates 0.000432 VTHO per day. There are no transactions generated for either of the earnings.
Got it, the only solution for this right now is to withdraw to create the transaction or manually add the reward transactions for when you are receiving the rewards. We’ll look into if there is a more automated solution.
Was this ever automated?
It would be nice to have the rewards show up as staking reward transactions for ADA wallets.
Hello, I have run into this issue as well. Mine may be slightly different as well. First I found a possible solve for our shared issue. On PoolTool.io you can track your public address to find the individual staking reward payouts that do not show up on your publicly tracked wallet address that links to wallets like Yoroi or Deadalus. Then it seems you can manually enter each payout with the values of what ADA was on that day at that time instead of a one time payout.
My problem is that when you stake the ADA it seems to show up on CoinTracker as a send/sale of the ADA so even if I add every individual staking reward manually I do not know if I am throwing off my total capital gains due to the fact that in the transactions ledger it does not know that the ADA even exists anymore. Should the initial Send/Sale that pops up be listed as “Transfer” and then add each manual staking reward?
Problem 2 or alternate situation. If you do your payout of your rewards so the ADA will show up a new ADA address is created for that transaction. If you add that ADA address to coin tracker it seems to show up as the full total of your ADA and not as the staking rewards amount. So your initial staking shows up as you Sending/Selling your total ADA and then if you add the staking rewards address it shows up as receiving that former Sent/Sold + Staking rewards total. I would imagine when adding to the taxes if done this way you will pay capitol gains on the Send/Sale of the stakes full total and then capitol gains of receiving or a non purchased now new total of your already taxed initial total + the new staked rewards. So it seems you now more than double the tax on top of the fact that it is just the staking reward you should be paying tax on and not the initial total nor the initial total for the staking payout.
So long post short (sorry) I am wondering if the possible fix for now is to mark the initial staked amount (That shows as a Send/Sale to unknown wallet) should be marked as a transfer since it is still in my possession (just frozen in stake) and then manually enter the individual staked rewards so that it will only be the rewards calculated to the tax total… or maybe I am horribly wrong?
I want to chime in and say now that Daedalus allows you to view your public address for ADA, Cointracker should now accept ADA wallets. I’ve made multiple posts about this and haven’t even received an acknowledgement from cointracker…
Not to mention the fact that you have to add each address tied to that wallet to get a correct balance for that wallet
Staking ADA in Daedalus receives the rewards every Epoch without requiring a transaction. Automatic Compounding. I enter it manually every week as staking rewards. It still remains (at end of year) to be seen if Cointracker will handle everything correctly. “Other Transactions” wallet seems to get confused easily. My accountant thinks I should be able to make a fake wallet in CT to represent my Daedalus that I enter manually, but that’s not the case.